FEI Company Finalizes Financial Statements and Files Form 10-K
HILLSBORO, Ore., Feb 29, 2008 (BUSINESS WIRE) -- FEI Company (Nasdaq:FEIC) filed its Annual Report on Form 10-K with the U.S. Securities and Exchange Commission today. The Form 10-K reports that the company's annual revenue for 2007 was $592.5 million and its fourth quarter revenue was $150.2 million. Both totals are $2.3 million lower than the preliminary results released by the company on February 4, 2008. Net income was $57.9 million or $1.35 per diluted share for the year and $15.6 million or $0.36 per diluted share for the fourth quarter. Those results are $1.6 million or $0.04 per share below the preliminary results. The revised financial results reflect the company's determination, during the completion of its financial statements, that $1.3 million of revenue related to a limited number of transactions involving multiple deliverables should be deferred and that service revenue should be adjusted downward by $1.0 million. The company anticipates recognizing the $1.3 million in revenue from transactions involving multiple deliverables in 2008. Balance sheets, statements of operations and supplemental information consistent with the Form 10-K filing are attached to this press release. About FEI FEI (Nasdaq:FEIC) is a global leader in providing innovative instruments for nanoscale imaging, analysis and prototyping. FEI focuses on delivering solutions that provide groundbreaking results and accelerate research, development and manufacturing cycles for its customers in semiconductor and data storage, academic and industrial R&D and life sciences markets. With R&D centers in North America and Europe, and sales and service operations in more than 50 countries around the world, FEI's Tools for Nanotech(TM) are bringing the nanoscale within the grasp of leading researchers and manufacturers. More information can be found online at: www.fei.com. Safe Harbor Statement This news release contains forward-looking statements that include expectations for some revenue to be recognized in 2008 instead of 2007. Factors that could affect these forward-looking statements include, but are not limited to, delays in shipping products for technical performance, component supply or other reasons, as well as potential changes in shipment plans requested by customers from whom the company has purchase orders. Please also refer to our Form 10-K, Forms 10-Q, Forms 8-K and other filings with the U.S. Securities and Exchange Commission for additional information on these factors and other factors that could cause actual results to differ materially from the forward-looking statements. FEI assumes no duty to update forward-looking statements. FEI Company and Subsidiaries Consolidated Balance Sheets (In thousands) (Unaudited) December SeptemberDecember 31, 30, 31, 2007 2007 2006 ---------------------------$ 280,593 $222,419$110,656
ASSETS CURRENT ASSETS: Cash and cash equivalents Short-term investments in marketable securities Short-term restricted cash Receivables Inventories Deferred tax assets Other current assets
152,041 198,362 234,202 20,984 12,973 20,172 157,120 176,468 144,955 138,762 137,243 97,470 4,788 4,996 4,386 36,273 40,941 33,474 ---------------------------790,561 793,402 645,315
Total current assets
Non-current investments in marketable securities Long-term restricted cash Non-current service inventories Property plant and equipment, net Purchased technology, net Goodwill Deferred tax assets Other assets, net
12,758 24,621 42,168 74,700 2,862 40,864 2,641
12,708 9,298 41,134 68,083 3,268 40,875 9,479
34,900 6,131 37,920 60,394 4,494 40,900 542
16,834 19,141 7,483 ---------------------------$1,008,009 $997,388$838,079 ============================
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable Accrued payroll liabilities Accrued warranty reserves Accrued agent commissions Deferred revenue Income taxes payable Accrued restructuring, reorganization and relocation Current portion of convertible debt Other current liabilities
$
31,156 $ 50,083$ 45,118 26,115 26,212 20,736 6,585 6,902 5,716 9,119 6,871 6,175 60,681 61,564 48,992 3,106 6,987 9,203
580 598 2,439 195,882 45,882 29,266 31,241 29,276 ---------------------------362,490 115,000 4,479 38,646 236,340 167,655 265,000 310,882 4,204 35,119 4,062 5,572
Total current liabilities Convertible debt Deferred tax liabilities Other liabilities
SHAREHOLDERS' EQUITY: Preferred stock - 500 shares authorized; none issued and outstanding Common stock - 70,000 shares authorized; 36,405, 36,252 and 34,052 shares issued and outstanding at December 31, 2007, September 30, 2007 and December 31, 2006 395,904 390,168 348,479 Retained earnings (accumulated deficit) 26,398 10,533 (36,041) Accumulated other comprehensive income 65,092 56,024 37,470 ---------------------------Total shareholders' equity 487,394 456,725 349,908 ---------------------------$1,008,009 $997,388$838,079 ============================
TOTAL
FEI Company and Subsidiaries Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) Thirteen Weeks Ended Year Ended ----------------------------- ------------------December September December December December 31, 30, 31, 31, 31, 2007 2007 2006 2007 2006 --------- --------- --------- --------- --------NET SALES: Products Service and components Total net sales $117,938 $113,565 $107,822 $465,088 $360,643
32,270 32,223 32,462 127,422 118,848 --------- --------- --------- --------- --------150,208 145,788 140,284 592,510 479,491 --------- --------- --------- --------- ---------
COST OF SALES: Products Service and components Total cost of sales
65,995
61,249
58,499
252,546
197,742
24,525 23,307 22,880 93,544 85,303 --------- --------- --------- --------- --------90,520 84,556 81,379 346,090 283,045 --------- --------- --------- --------- --------59,688 61,232 58,905 246,420 196,446 --------- --------- --------- --------- ---------
Gross profit
OPERATING EXPENSES: Research and development Selling, general and administrative Amortization of purchased technology Merger costs Restructuring, reorganization and relocation Asset impairment Total operating expenses
18,159
16,414
16,112
66,042
57,528
33,499
30,915
28,508
124,160
100,279
450 -
444 -
438 -
1,777 -
2,034 484
132 (27) (272) 12,609 465 --------- --------- --------- --------- ---------
52,240 47,773 45,031 191,707 173,399 --------- --------- --------- --------- --------7,448 13,459 13,874 54,713 23,047 --------- --------- --------- --------- ---------
OPERATING INCOME
OTHER INCOME (EXPENSE): Interest income Interest expense
6,498 (2,444)
5,902 (2,218)
4,154 (2,110)
22,372 (8,735)
13,150 (7,355)
Gain on investment disposals and impairment, net Other expense, net Total other income, net
511 1,167 (230) (1,034) (538) (3,492) (723) --------- --------- --------- --------- --------3,824 3,161 1,506 11,312 5,072 --------- --------- --------- --------- ---------
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES INCOME TAX EXPENSE (BENEFIT)
11,272
16,620
15,380
66,025
28,119
(4,331) 3,236 3,481 8,077 10,467 --------- --------- --------- --------- ---------
INCOME FROM CONTINUING OPERATIONS DISCONTINUED OPERATIONS: Gain (loss) from discontinued operations Gain on disposal, net of income taxes INCOME FROM DISCONTINUED OPERATIONS
15,603
13,384
11,899
57,948
17,652
-
-
(580)
-
(947)
263 3,335 390 3,335 --------- --------- --------- --------- ---------
263 2,755 390 2,388 --------- --------- --------- --------- --------$ 15,866 $ 13,384 $ 14,654 $ 58,338 $ 20,040 ========= ========= ========= ========= =========
NET INCOME
BASIC NET INCOME PER SHARE DATA: From continuing operations $ 0.43 ========= From discontinued operations $ 0.01 ========= DILUTED NET INCOME PER SHARE DATA: From continuing operations From discontinued operations
$ 0.37 $ 0.35 $ 1.62 $ 0.52 ========= ========= ========= ========= $ 0.00 $ 0.08 $ 0.01 $ 0.07 ========= ========= ========= =========
$ 0.36 $ 0.31 $ 0.30 $ 1.35 $ 0.47 ========= ========= ========= ========= ========= $ 0.01 $ 0.00 $ 0.06 $ 0.01 $ 0.06 ========= ========= ========= ========= =========
WEIGHTED AVERAGE SHARES OUTSTANDING: Basic Diluted
36,323 36,216 33,886 35,709 33,818 ========= ========= ========= ========= ========= 46,477 46,419 44,079 46,254 39,752
========= ========= ========= ========= =========
FEI Company and Subsidiaries Consolidated Statements of Operations (Unaudited)
Thirteen Weeks Ended (1) Year Ended (1) --------------------------- ----------------December September December December December 31, 30, 31, 31, 31, 2007 2007 2006 2007 2006 -------- --------- -------- -------- -------NET SALES: Products Service Total net sales COST OF SALES: Products Service Total cost of sales
78.5% 77.9% 76.9% 78.5% 75.2% 21.5% 22.1% 23.1% 21.5% 24.8% -------- --------- -------- -------- -------100.0% 100.0% 100.0% 100.0% 100.0%
43.9% 42.0% 41.7% 42.6% 41.2% 16.3% 16.0% 16.3% 15.8% 17.8% -------- --------- -------- -------- -------60.3% 58.0% 58.0% 58.4% 59.0% -------- --------- -------- -------- -------39.7% 42.0% 42.0% 41.6% 41.0% -------- --------- -------- -------- --------
Gross profit
OPERATING EXPENSES: Research and development Selling, general and administrative Amortization of purchased technology Restructuring, reorganization and relocation Asset impairment Merger costs Total operating expenses
12.1% 22.3% 0.3%
11.3% 21.2% 0.3%
11.5% 20.3% 0.3%
11.1% 21.0% 0.3%
12.0% 20.9% 0.4%
0.1% 0.0% 0.0% 0.0% 2.6% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% -------- --------- -------- -------- --------
34.8% 32.8% 32.1% 32.4% 36.2% -------- --------- -------- -------- -------5.0% 9.2% 9.9% 9.2% 4.8% -------- --------- -------- -------- --------
OPERATING INCOME
OTHER INCOME (EXPENSE): Interest income Interest expense Gain on investment disposals and impairment, net Other expense, net
4.3% -1.6%
4.0% -1.5%
3.0% -1.5%
3.8% -1.5%
2.7% -1.5%
0.0% 0.4% 0.0% 0.2% 0.0% -0.2% -0.7% -0.4% -0.6% -0.2% -------- --------- -------- -------- --------
Total other expense, net
2.5% 2.2% 1.1% 1.9% 1.1% -------- --------- -------- -------- --------
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES
7.5% 11.4% 11.0% 11.1% 5.9% -------- --------- -------- -------- --------
INCOME TAX EXPENSE (BENEFIT)
-2.9% 2.2% 2.5% 1.4% 2.2% -------- --------- -------- -------- --------
INCOME FROM CONTINUING OPERATIONS
10.4% 9.2% 8.5% 9.8% 3.7% -------- --------- -------- -------- --------
DISCONTINUED OPERATIONS: Loss from discontinued operations Gain on disposal, net of income taxes INCOME FROM DISCONTINUED OPERATIONS
0.0%
0.0%
-0.4%
0.0%
-0.2%
0.2% 0.0% 2.4% 0.1% 0.7% -------- --------- -------- -------- -------0.2% 0.0% 2.0% 0.1% 0.5% -------- --------- -------- -------- -------10.6% 9.2% 10.4% 9.8% 4.2% -------- --------- -------- -------- --------
NET INCOME
(1) Percentages may not add due to rounding.
FEI COMPANY Supplemental Data Table 1 ($ in millions, except per share amounts) (Unaudited) ---------------------------------------------------------------------Q4 Ended Q3 Ended Q4 Ended 12/31/2007 9/30/2007 12/31/2006 ---------------------------------------------------------------------Income Statement Highlights ---------------------------------------------------------------------Consolidated sales $ 150.2 $ 145.8 $ 140.3 ---------------------------------------------------------------------Gross margin 39.7% 42.0% 42.0% ---------------------------------------------------------------------R&D spending $ 18.2 $ 16.4 $ 16.1 ---------------------------------------------------------------------R&D (% of sales) 12.1% 11.3% 11.5% ---------------------------------------------------------------------SG&A $ 33.5 $ 30.9 $ 28.5 ---------------------------------------------------------------------SG&A (% of sales) 22.3% 21.2% 20.3% ---------------------------------------------------------------------Stock compensation expense - COGS$ 0.4 $ 0.2 $ 0.2 ---------------------------------------------------------------------Stock compensation expense - R&D $ 0.3 $ 0.3 $ 0.2 ---------------------------------------------------------------------Stock compensation expense - SG&A$ 1.5 $ 0.7 $ 1.4 ---------------------------------------------------------------------Net income from continuing
operations $ 15.6 $ 13.4 $ 11.9 ---------------------------------------------------------------------Net income from discontinued operations $ 0.3 $ 0.0 $ 2.8 ---------------------------------------------------------------------Net income $ 15.9 $ 13.4 $ 14.7 ---------------------------------------------------------------------Diluted earnings per share from continuing operations $ 0.36 $ 0.31 $ 0.30 ---------------------------------------------------------------------Diluted earnings per share from discontinued operations $ 0.01 $ 0.00 $ 0.06 ---------------------------------------------------------------------Interest income add back included in the calculation of diluted EPS $ 1.2 $ 1.2 $ 1.2 ---------------------------------------------------------------------Sales by Market Segment ---------------------------------------------------------------------NanoElectronics $ 33.0 $ 48.1 $ 42.4 ---------------------------------------------------------------------NanoResearch & Industry $ 67.8 $ 51.6 $ 55.3 ---------------------------------------------------------------------NanoBiology $ 17.1 $ 13.9 $ 10.1 ---------------------------------------------------------------------Service and Components $ 32.3 $ 32.2 $ 32.5 ---------------------------------------------------------------------Sales by Geography ---------------------------------------------------------------------North America $ 63.2 $ 46.5 $ 49.9 ---------------------------------------------------------------------Europe $ 63.8 $ 61.5 $ 52.2 ---------------------------------------------------------------------Asia Pacific $ 23.2 $ 37.8 $ 38.2 ---------------------------------------------------------------------Bookings ---------------------------------------------------------------------Total $ 156.3 $ 153.3 $ 171.7 ---------------------------------------------------------------------Book-to-bill ratio 1.04 1.05 1.22 ---------------------------------------------------------------------Backlog - total $ 310.8 $ 305.7 $ 305.9 ---------------------------------------------------------------------Backlog - Service and Components $ 54.7 $ 58.5 $ 46.8 ---------------------------------------------------------------------Bookings by Market Segment ---------------------------------------------------------------------NanoElectronics $ 39.6 $ 28.8 $ 49.7 ---------------------------------------------------------------------NanoResearch & Industry $ 63.2 $ 80.2 $ 65.1 ---------------------------------------------------------------------NanoBiology $ 24.0 $ 11.2 $ 23.9 ---------------------------------------------------------------------Service and Components $ 29.5 $ 33.1 $ 33.0 ---------------------------------------------------------------------Balance Sheet Highlights ---------------------------------------------------------------------Cash, equivalents, investments, restricted cash $ 491.0 $ 455.8 $ 406.1 ---------------------------------------------------------------------Operating cash generated (used) $ 34.8 $ 11.4 $ 24.4 ----------------------------------------------------------------------
Accounts receivable $ 157.1 $ 176.5 $ 145.0 ---------------------------------------------------------------------Days sales outstanding (DSO) 95 110 94 ---------------------------------------------------------------------Inventory turnover 2.6 2.6 3.5 ---------------------------------------------------------------------Inventories $ 138.8 $ 137.2 $ 97.5 ---------------------------------------------------------------------Property, plant and equipment $ 74.7 $ 68.1 $ 60.4 ---------------------------------------------------------------------Fixed asset investment (during quarter) $ 7.3 $ 5.1 $ 2.1 ---------------------------------------------------------------------Depreciation expense $ 3.8 $ 3.4 $ 3.3 ---------------------------------------------------------------------Current liabilities $ 362.5 $ 236.3 $ 167.7 ---------------------------------------------------------------------Working capital $ 428.1 $ 557.1 $ 477.7 ---------------------------------------------------------------------Shareholders' equity $ 487.4 $ 456.7 $ 349.9 ---------------------------------------------------------------------Headcount (permanent and temporary) 1,866 1,851 1,683 ----------------------------------------------------------------------
SOURCE: FEI Company FEI Company Fletcher Chamberlin, Investor Relations, 503-726-7710 fletcher.chamberlin@fei.com Copyright Business Wire 2008 News Provided by COMTEX